The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1887-06-08
A BIT OF INSIDE HISTORY
How the Sale of the Vandalia to Ives
and Staynor Was Brought About.
The Pennsylvania Company Not Likely to Suf-
fer Much Inconvenience from the Trans
fer-Some Gossip from st. Louis.


o part OF the original scheme of these gentlemen
in securing the control of the Baltimore & Ohio
railroad, and the making. has been reported,
of a grand transcontinental route from the At
lantic to the Pacific
r. The history of the cyan. deal, as it is being
gradually unfolded. shows that this purchase
afterthought, brought about by mere ac-
sident, and FOR q strictly local purpose. The
story it comes to the Journal, we'll vouched
Tor, is to the effect that the purchase and control
pf the Vandala system was not suggested or
thought Of by any member Of the Ives-Staynor
syndicate until its possibility suggested and
It's purchase urged On Messrs Ives and Staynor
by local officer of the Cincinnati, Hamilton 81
indianapolis road, who in position to
know Mr.. McKeen's views and feelings regard
Ing the Pennsylvania officials, AID who saw in
the acquisition OF the Vandalia the great advan-
tage that would result to the c., II. g. l., giving
IL a through line to St. Louis in direct competi-
tion with the Big Four, If not depriving that
road OF its present St Louis connec-
ton, and thereby rendering his road a
valuable property. which it was not
then and never had been since it was built The
gentleman who, it is said, conce ived the Wanda
liza deal aud engineered it to the point Of secur-
Ing the option from Mr.. McKesn, and the settle
ment OF the details. was, the Journal is cred
IDLY informed. Mr. Charles A. Rockwell, the
general passenger agent of the c., III & Mr..
Rockwell formerly resident of Terre
Haute, and a personal friend of w. r McKeen.
He had frequently talked with Mr.. McKeen, and
lad heard that gentleman speak Of his grev-
lnces against the Pennsylvania people and his
lesire to dispose of his interest in the 7. H. & l.
Mr. Rockwell took this all in, and worked ND
his scheme, which he developed to Mr.. Ives He
showed Mr.. Ives that for a comparatively insig
nifcant sum the purchase of Mr.. McKeen's in
berest in the connecting link between Indianap-
Dlis and Terre Haute would give them the con-
troll of a large system of railroad, reaching to
st. Louis and South Bend, and it would help
out his B. e. o. schemes. Mr.. Ives laughed at
the proposition, and remarked that the VAN
was Pennsylvania property and could not be
cured. Rockwell insisted 1t could be obtained,
and DIR. Ives. still doubling told Mr. Rockwell
TO go ahead and see what he could do. Rock
well opened negotiations personally with Mr.:
NcKeen, and the option was secured. Ives and
his friends then looked into the details, and the
negotiations were contaminated
One of tho ablest railroad attorneys in this
country yesterday remarked to a representative
of the Journal that the Pennsylvania people
were practically masters of the situation in the
c.. II. &c ID. and the T. II. g l. deal, whenever
they chose to make move, 80 far as the st.
Louis. Vsndalia & Terre Haute division is con-
cerned. They own seven tenths of the stock,
and the lease Of the St L.. " & t. ii. to the c.,
III. g. d. syndicate is worded precisely was
the leasA of the ST. Louis Alton d Terre Haute
60 the Bee-line and the Pennsylvania Company,
which the Supreme Court of the United States
decided to be illegal and the Pennsylvania Com
pany, therefore, not bound by the lease. Under
no circumstances could the C., II. 81 D. throw
Terre Haute while east of Terre Haute the
Pennsylvania is at the mercy of the purchasers
OF the Terre Haue & Indianapolis proper. He
said the Pennsylvania had better right to-day
AZ q A. Iot.~ H.. -
Haute than did the c., H. e. ID. syndicate, as a
question of law. For this reason he looks for
matters to move along smoothly between the
e.. III. & ID. syndicate and the Pennsylvania
but when the latter sees fit to violate the con-
tract and break the lease they will light stand
Ing on their feet.
dollar of stock which the Ives-Stsynor syndicate
owned in the c., H. & d. is now hypothecated
In New England banks as security for money
they have borrowed.
II is said that the Ives-Staynor syndicate has
not paid one dollar above the forfeit money on
the purchase of the Cincinnati. Wabash 81 Mich
igan road.
AS reward for the excellent work Charles
general PASSENGER agent OF the C.. II.
& D., has done in the I. Fl. d l. and c., III. d
ID. DEAL he is to be appointed to the important
position of comptroller of all the roads which
are in the control of the Ives-Staynor syndicate,
a position sisdilar in character to that held by
T. d. Messer on the Pennsylvania lines. 1t is
that the position of general passen-
ger agent of the c., III. q ID. and the Vandalia
line is to be offered to II. r. Derne, assistant
general passenger agent of the Pennsylvania
Company, aud one of the most competent and
popular passenger officials on Western lines.
St. Louis Gossip About the vandalia.
ST.. LOUIS, June Colonel HILL superintend-
ent of the vandalia. says that the arrangements
entered into with the Ohio & Mississippi for
entrance into East St Louis was that the Van
dalia should make fill embracing an area of
considerable extent This partially DONE
and the completion of the work is the only claim
the Ohio & Mississippi has against the Vandala.
A few hundred dollars would make good the de-
fciency, and the two roads not likely to
come to a rupture over triiing matter. An
Ohio g. Mississippi official, when questioned
about the matter. smiled and said there was
% pre- to the story than that.
In regard to the Pennsylvania Company, the
Vandalia people express the belief that the Gin
,innati Hamilton & Dayton syndicate has sim
ply stepped into President McKeen's shoes, and
that traffic arrangements will be continued as
before. A contract is said to have been entered
into with the leasing of the Vandaia by which
ample provision was made for any con-
railroad men is that the Baltimore & Ohio is
in the background, and that the
luture of the Pennsylvania as regards St Louis,
hinges largely on the concessions this company
q willing to make the Baltimore 81 Ohio in the
natter Of the latter's New York and Philadel-
ohia connection. Should the Pennsylvania
,red. it's means of reaching this city, other than
by the construction OF independent line, are
,ot inviting. The Indianapolis a. Vincennes
md the Indianapolis, Decatur e. Springfield are
many miles longer, and. by reason of roughness
render fast running dangerous The Bee-line is
lutte out of the question as an intense rivalry
,xists between the two roads, 1t is even whis- |
,ered that the Decline is at the bottom of the |
whole trouble. In Short should it transpire |
hat the Pennsylvania has been outwittsd. and |
will be deprived by the Baltimore e. Ohio of its |
immense Southwestern business over the Van |
ialia, the construction OF an indedendent road to
his city would appear to be the sole recourse.
Pennsylvania Western Lines.
PITTsBURG, June The annual meeting of |
he Pennsylvania Company operating lines west |
4 Pittsburg was held in this city to-day and |
he following directors elected: G. B. Roberts,
l. II. Houston, Wistar Morris, Edmund Smith, |
nnhn ~.